PTC (PTC) Stock Forecast & Price Target

PTC has demonstrated strong financial performance, with total revenue reaching $894 million, a 39% increase on a constant currency basis year-over-year, underscoring its robust market position in computer-assisted design and product lifecycle management solutions. The company has shown resilience by achieving organic annual recurring revenue (ARR) growth of 10% in Europe and 7% in the Americas, even amidst challenging macroeconomic conditions in manufacturing. Looking forward, PTC is expected to maintain momentum with a projected revenue growth of approximately 13.2% for FY25, partially driven by the anticipated growth in its product lines and successful cross-selling initiatives.

The financial analysis indicates a negative outlook for PTC’s stock, primarily due to a downward revision in revenue estimates for FY26, decreasing by approximately 0.5% to $2,798 million, which falls short of PTC's original guidance. Additionally, the company's net new annual recurring revenue (ARR) remains essentially flat year-over-year, which contradicts expectations for growth, thereby impacting future recurring revenue layering prospects. Ongoing macroeconomic challenges and potential business disruptions from recent divestments have further necessitated adjustments to ARR estimates for FY26 and FY27, contributing to a more conservative growth outlook.